An important shift in active labour market policy is underway across OECD countries. The narrow emphasis on short term training for unemployed adult workers is being replaced by a more holistic approach to workforce development. This change seeks to integrate a wide range of employment related policies and programs so as to deliver skills formation systems that address skills mismatches in labour markets and increase the capacity of individuals to actively participate in the workforce throughout their working life. Perhaps the most important aspect of workforce development, however, is the multi-dimensional level at which it operates. While many labour market policies and programs are designed and delivered by higher levels of government, effective workforce development systems operate largely at the local level. On its own, workforce development is not particularly complicated and policymakers in other places have a pretty good idea of what works and what doesn’t. The challenge is a governance one. The development of career pathways to good jobs in local economies is possible where local labour market actors such as employers, educational institutions, employment service providers, and other community based organizations collaborate to develop them.
One of the significant things we do is publish an annual Labour Market Update, out just last week. This report is based on census data, Toronto is one census division, employment information such as employer tax filing, information from the City and information gathered in consultations and meetings. The report proposes a strategic framework that, this year, highlights four major themes that impact Toronto’s industrial sectors and inform workforce development; diversity, including age, ability, immigrant or newcomer status; green economy – corresponding to the Province of Ontario’s focus on green jobs and an emerging green marketplace; economic transformation – the change from a manufacturing economy to a service economy, and; technological change – the digitization of almost everything.
International immigrants are the largest source of migration to Toronto, while intercity migrantscomprise the next largest group. In 2012 international migration predicted about 85,000, growing to over 110,000 by 2015 Conference Board of Canada)City continues to be a net importer of labour from surrounding areasA very high influx of 18-24 year olds (attending many post-secondary institutions in the city) A net out-migration among the other three age categories (0-17 year olds, 45-64 year olds and 65 years and older).
Toronto’s labour force totalled over 1.3 million in December 2011, representing a decrease of 1.4%compared to the same period in 2010.
In 2011, City of Toronto residents continued to experience a higher unemployment rate and a lowerparticipation rate than Toronto CMA and Ontario residents.Youth in Toronto, aged 15-24, currently have an unemployment rate that is almost three times higherthan adults, with a participation rate of only 58% — a rate that is almost 10% less than that of adults.Even when young people enter the labour market, the jobs that are available are often contract ortemporary jobs, a situation that persists as people move into their 30’s and beyond. This generation is working in positions not reflective of their education. Unable to attain meaningful employment, young people turn to higher and higher levelsof education.In 2010 more males than females were employed and part time employment is more evident amongwomen than men according to the Labour Force Survey. Employment amongst women has increasedby 10.3% and for men by 4%, whereas part time employment increased by about 14% since 2005.
• Immigrant unemployment rates have been consistently higher than Canadian-born since 2006,but the economic downturn starting in late 2008 appears to have widened that gap from 2% inDecember 2006, to 3.4% in December 2011.Between December 2010-2011 immigrants gained 63,800 jobs both in the service-producingsector and in the goods-producing sector. Notable job gains were inaccommodation and food services (12,400 jobs), construction (12,200 jobs) and in professional,scientific and technical services (12,000 jobs).• Job losses for immigrants were recorded in trade,information, culture and recreation
The number of Toronto’s working poor has increased significantly. According to a report by theMetcalfe Foundation, the incidence of this category of workers was growing before the financial crisisof 2008 began and the manufacturing sector started to decline. The chart illustrates the areasin Toronto where the numbers of working poor are the highest.Those classified as working poor:• work a comparable number of weeks per year to the rest of the working-age population;• hold jobs mainly in sales and service occupations (close to one-third compared to one-fifth ofthe overall working population);• are more likely to live without an adult partner than the rest of the working-age population;• are only slightly less educated than the rest of the working-age population, 52% have somehigher education, versus 57% of the working-age population; and• are younger than the working-age population as a whole, 63% of working-poor individuals arebetween the ages of 18 and 44 as compared to 50% of the working-age population.
Toronto’s largest industry grouping:-Professional, Scientific and Technical Services, formerly knownas Business Services, although 85% of residents work in service-producing industries.- Financial Services- Retail TradeManufacturing ( trend- employment in the Manufacturing industry in Toronto has been declining at an average annual rate of 4.7% since2000)- Health Care- Education Biomedical and biotechnology cluster, part of the health sector, is the fourth largest inNorth America. The construction sector, especially the residential one, has remained strong, positivelyimpacting the finance, insurance and real estate sectors.There is also a significant concentration of firms that aredirectly or indirectly related to “green activities”. The green sector is divided into six main categories,crossing a number of sectors, all of which contribute to “greening Toronto”. These include:-Professional Support Services -Not for profit-Corporate Energy Associations-Finance and Venture Capital Technology Companies
This sector represents businesses that sell expertise, typically reflecting expert knowledge or aprofessional designation, including:• Legal Services;• Accounting, Bookkeeping and Tax Preparation Services• Architectural, Engineering and Related Services• Specialized Design Services (interior design; graphic design)• Computer Systems Design and Related Services• Management, Scientific and Technical Consulting Services• Scientific Research and Development• Advertising, Public Relations and Related Services• Other Services (photography services; veterinary services; marketing research)
The Toronto Region has a high concentration of Professional, Scientific and Technical Servicesemployment compared to the rest of the province. Employment in this sector in GTA accounts for 48% ofall Ontario’s jobs.Concentration of subsectorsThe proportion of this industry sector comparedto all employment is 29% higher in this region than across the province as whole. Theconcentrationis especially pronounced in Toronto and York. Toronto has extremely high concentrations of employmentin the Legal Services and Advertising sectors, as well as high concentrations in Specialized Design,Consulting Services, Accounting and Computer Systems. In Scientific Research and DevelopmentServices, Toronto comes in below the provincial average.Labour ForceThe Computer Systems and Legal Services subsectors are the largest job clusters in the City ofToronto, equaling approximately 30,000 jobs each. Several other subsectors, in Toronto and otherareas, have over 10,000 jobs (Census 2006)Number of businessesBetween December 2008 and June 2011, the trend in the number of employers by employeesize has been as follows:• An increase in the number of firms with 1-19 employees;• A slight drop in the number of firms with 20-99 employees;• A considerable drop in the number of firms with 100+ employees.
A prominent manufacturing sector in Toronto. Toronto dominates the provincial food industry as more than half of all the food processing in theprovince occurs in the Greater Toronto Region. It is the second largest employment sector in the city. With over700 businesses in Toronto and 1,500 in the Census Metropolitan Area (CMA), and nearly 60,000employees in the CMA.Bakeries are the largest single type of food processing plant, and this has resulted in diverse, highquality products in this sub-sector. Meat processing is the next largest sub-sector, followed by beveragesWithin the next 10 years, employment growth rates are expected to double.Future TrendsA developing “new food economy” has emerged, characterized by new consumer demands for localfood, and by an increased prevalence of small and medium sized companies focusing on respondingto these demands. Increasingly, consumers are driving Toronto’s food market, indicating risingpreferences for new kinds of products as local, ethnic or organic food.
The non-profit sector is made up of organizations that deliver programs and services from health careto after school sports that improve people’s daily lives, foster cohesion, integration and innovationand bring vibrancy to communities. The sector can be divided into five subcategories: religiousorganizationswelfare organizations, arts, entertainment and recreation, other non-profit educational services.
Size of non-profit workforceApproximately 36,930 people or 3% of employed residents in the City of Toronto worked in the corenon-profit sector in 2006. Residents of the City of Toronto make up 21% of Ontario’s core non-profitsector labour force whereas the Toronto CMA residents make up 38.8%. The non-profit labour force in the Toronto CMA grew by 17.1% between 2001-2006, outpacingthe growth of the total labour force by almost 50%. Over a third (37.6%) of the Toronto CMA corenon-profit sector labour force is found in the Child Day-care Services sector.
Tourism in Toronto is a key industry that plays an important role in the city’s economy; generatingemployment, foreign exchange earnings, investment and regional development. Characteristics of thesector include:• Total spending by visitors is $4.35 billion• Visitor spending in Toronto in 2010 generated $1.08 billion in total taxes• Toronto has over 24,000 tourism related businesses employing 224,000 peopleLabour ForceIn 2010, nearly 30% of the people working in accommodation food and beverage servicesfell within the 15-24 age group. Sector with many entry-level jobs and career opportunitiesImmigrants are an important source of labour for tourism industries in the Toronto CMA, holding27.3% of jobs. Tourism skills are transferable around the world. Depending on the nature of the job,work may be part-time or full-time.Labour shortagesAccording to the Canadian Tourism Human Resources Council by 2025, the potential labour shortagein Ontario’s tourism sector the gap between tourism labour supply and demand in Toronto is estimatedto potentially rise to 42,000 in Toronto.
We’ll talk a bit today about the green economy.
Talent is critical – the green economy is dependent on the combination of quality of place, talent and opportunity. But many stakeholders involved in workforce development, as well as job seekers, are confused about what exactly a green job is, where these jobs will be and what the training and education requirements for these jobs will include. There is also confusion about whether these green jobs will be new jobs with new skills requirements or expectations, jobs or professions that will require the same skills with new applications of those skills, or whether there will be a new occupations and trades to meet changing occupational requirements. Training and Service providers are looking for concrete information on employment in green industries and about green occupations and careers – hard to find; classification categories such as the NOC codes or the NAICS don’t really apply to green jobs, hard to classifiy so hard to post positions; how do you advertise and where do you find people?
More than half of the organizations providing green skill building programsare NGOs, not-for-profits, and community groups. These organizationsdeliver close to 50% of all green programs in the Greater Toronto Area.These organizations have developed considerable capacity to develop anddeliver training, often in partnership with other organizations (OAYEC/First Work).Education institutions often provide more than one skill building program and account for over 20% of the skill training providers, butprovide approximately one third of all green skill building programs. Colleges and universities are by far the most prolific providers of green skill buildingprograms: 75 programs in the GTA are provided by 16 colleges and universitiesin the area. Businesses, Industry, labour groups and professional associations also contributesignificantly to the mix. They provide approximately 10% of all greenskill training programs.
Green skill building programs seems to be somewhat evenly distributed amongst thesefour main categories: environmental stewardship (31%), sustainable livingpractices (26%), energy (22%, generation and conservation), and comprehensivegreen (21%).
1. Workforce Development in a Global City Toronto’s , Opportunities and Priorities 2011
2. What is Workforce Development? 4/24/2012 2
3. Toronto’s Opportunities and Priorities: A Local Labour Market Update 4/24/2012 3
4. Toronto Highlights• A major economic engine of the country with 83,000 businesses 4/24/2012• Major employment clusters: finance and financial services, retail trade, arts and culture, tourism and hospitality.• Manufacturing and construction account for a significant percentage of the economy.• 2nd Greenest Canadian City in Leading the Fight against Climate Change (Global Financial Centres Index - GFCI 9)• Toronto has the lowest risk in the world for employers to recruit, employ and relocate employees (Aon Consulting’s People Risk Index) 4
5. Labour Force Characteristics • Population City of Toronto 4/24/2012 • Population: 2,615,060, (7.8% of Canada’s total population) • Between 2006 and 2011, Toronto’s population grew 4.5%. • By 2031 approximately 20.5% of the population will be 65 years or older and the proportion of youth will be only half that of seniors. 5
6. Migration 4/24/2012 6
7. Labour Force Characteristics 4/24/2012 7 Source: City of Toronto
8. Unemployment rate 4/24/2012 8
9. Higher unemployment rates for immigrants 4/24/2012 9
12. Toronto’s Key Sectors to Watch• PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES 4/24/2012• FOOD MANUFACTURING• NON PROFIT• TOURISM AND HOSPITALITY 12
13. Professional, Scientific and Technical Services 4/24/2012 13
14. Employment Overview 4/24/2012 14
15. Food Manufacturing Sector 4/24/2012 15
16. Non- Profit Sector 4/24/2012 16
17. Employment Overview 4/24/2012 17
18. Tourism and Hospitality Sector 4/24/2012 18
20. Strategic Training Priorities• Green Economy 4/24/2012• Diversity• Changing Economic Landscape• Technological Change 20
21. Green Economy 4/24/2012 21
22. Green Jobs• An estimated 13, 000 jobs have already been created and a projected 40,000 more to come (Government of Ontario) 4/24/2012• 400 new jobs created in Newmarket due to the opening of a production line for solar panel components by Flextronics• Sungrow Canada Inc.’s new headquarters in Vaughn has created 50 new jobs in manufacturing, research and development, and technical support services for solar voltaic inverters.• Sieman’ s solar manufacturing facility in Burlington started with 10 jobs and 50 more are expected to come 22 within the next 5 years.
23. Green Skill Training Programs in GTA 4/24/2012 23
24. Green Themes of Skill Building Programs 4/24/2012 24
25. 4/24/2012 For more information www.workforceinnovation.ca Phone: 416 934 1653 Fax: 416 934 1653Address: 215 Spadina Avenue, Suite 350 Toronto, ON, M5T 2C7 25